BitOasis Crypto Exchange Faces License Suspension in Dubai
BitOasis Crypto Exchange Faces License Suspension in Dubai
Dubai’s Virtual Assets Regulatory Authority (VARA) reprimanded BitOasis after failing to meet mandated conditions within the timeframes set out by the local regulator.
The exchange is one of the largest crypto platforms focused on customers in the Middle East. It is the first firm to get a conditional license in Dubai.
The Emirate’s VARA issued two alerts on July 10, citing it had initiated an enforcement action against BitOasis.
The regulatory authority acknowledged that the cryptocurrency exchange had been authorized to function within the city as long as it adhered to specific requirements within a 30-60 day period.
While VARA did not disclose the specifics of BitOasis' non-compliance, the regulator stated that until the exchange fulfills those conditions, its license for institutional and qualified retail investors will remain inactive.
According to a blog post in May, BitOasis obtained the initial MVP license, standing for Minimally Viable Product license, from VARA. This move allowed the platform to offer broker-dealer services to investors in Dubai.
The license represents the final stage in a multi-step process preceding the issuance of a Full Market Product (FMP) license.
At present, VARA has not granted any firm an FMP license. According to the independent regulator, BitOasis must fulfill the conditions outlined in its existing permit to be eligible to apply for the FMP license.
The recent measures taken against BitOasis bring attention to the regulatory efforts in Dubai that have simultaneously allowed and imposed limitations on crypto-related activities.
In April, VARA sent a written reprimand to Su Zhu and Kyle Davies, founders of collapsed hedge fund Three Arrows Capital (3AC).
The pair faced consequences for engaging in the operation and promotion of their new OPNX cryptocurrency exchange in Dubai without acquiring the required license.
